<\/p>\n
If you want your retail store to thrive, you\u2019ve gotta focus on the numbers.<\/span><\/p>\n As in bottom line revenue, and more importantly, profit margins.<\/span><\/p>\n As we all know, you can have massive revenue numbers but if your costs are too high your business will crumble from the inside out.<\/span><\/p>\n That may be a little dramatic, but the point remains; cutting costs is an important part of retail success.<\/span><\/p>\n One cost that all retailers face is what\u2019s politely termed \u201cinventory shrinkage.\u201d<\/span><\/p>\n Inventory shrinkage can be due to a number of factors including:<\/span><\/p>\n Inventory shrinkage can represent a decent sized chunk of change.<\/span><\/p>\n So while all of these factors should be prevented, shoplifting and internal theft can be particularly aggravating.<\/b><\/p>\n Nobody likes the feeling of being stolen from, especially when it\u2019s happening right under your nose.<\/span><\/p>\n Aside from the emotional costs, the financial costs can be hefty as well.<\/span><\/p>\n As retail security solution provider Halo Metrics states:<\/span><\/p>\n \u201cAccording to the National Retail Federation Security Survey inventory shrink averaged 1.38 percent of retail sales. External theft or shoplifting accounted for a significant portion of this with an average loss of $377 per incident.\u201d<\/span><\/i><\/p>\n In this article, we\u2019re going to give you some actionable steps you can take to prevent (or at least mitigate) theft of your inventory by both employees and potential customers.<\/span><\/p>\n While some of these tips may seem like common sense, others may be new to you. In any case, without execution, even common sense doesn\u2019t serve you.<\/span><\/p>\n <\/p>\n Some of the other steps we\u2019re going to give you involve training your retail staff to recognize suspicious behaviors in shoppers so that you can curb theft.<\/span><\/p>\n However, these steps are useless if they\u2019re not implemented by your staff.<\/span><\/p>\n If your staff members themselves are stealing from you, it\u2019s unlikely that you\u2019ll be able to ever curb inventory shrinkage without putting a stop to them.<\/span><\/p>\n Here are some actions you can take during the hiring process to \u201cscreen\u201d for character:<\/span><\/p>\n <\/p>\n OK, so you have some people you trust behind the counter and on the floor.<\/span><\/p>\n Next step: prevent shoplifters and would-be thieves by training your staff to recognize some \u201cred flags.\u201d<\/span><\/p>\n Obviously, none of these signs alone is a 100% guarantee that someone will shoplift. But several of these signs at once should represent a big warning:<\/span><\/p>\n Now, let\u2019s be clear: the majority of shoppers who exhibit one or even more of the above behaviors are NOT shoplifters.<\/span><\/p>\n So don\u2019t go around doing \u201ccitizen\u2019s arrests\u201d or calling the police on someone just because they don\u2019t have the sense to dress correctly for the temperature outside.<\/span><\/p>\n Instead, use these as signs that your staff should be vigilant.<\/span><\/p>\n <\/p>\n There is no such thing as a \u201ctypical\u201d shoplifter.<\/span><\/p>\n Different shoplifters have different motivations for stealing and thus have different methods of doing so.<\/span><\/p>\n For example, someone who is addicted to the thrill of stealing may actually be able to afford all of the merchandise they are taking. Their motivation isn\u2019t financial – it\u2019s emotional.<\/span><\/p>\n This funny video does a pretty good job of describing the different groups of shoplifters (excluding \u201cthe troll\u201d obviously).<\/span><\/p>\n Here are the groups and their typical behavior, in order from least to most damaging to your bottom line:<\/span><\/p>\n <\/p>\n The layout of your store can have a big effect on how easy or hard it is for shoplifters to steal from you. Here are a few low-cost tips you can implement:<\/span><\/p>\n <\/p>\n So if you have a strong suspicion that someone is stealing from you, what should you do?<\/span><\/p>\n Don\u2019t attempt to physically stop them. This could put you or your staff in legal or physical danger.<\/span> Instead, train your staff to say something like the following:<\/span><\/p>\n \u201cSir, I noticed you are carrying around some merchandise in your pocket. Do you want me to hold that at the counter for you while you finish shopping?”<\/span><\/i><\/p>\n This statement gives them a chance to put the items back or pay for them.<\/span><\/p>\n If you\u2019re not quite positive that they have stolen, a staff member could say something like,<\/span><\/p>\n \u201cI love your shoes! They remind me of my cousin\/uncle\/aunt\u2026\u201d<\/span><\/i><\/p>\n The implication here is that you can easily identify the shoplifter if they steal from you.<\/span><\/p>\n Employee theft and shoplifting happen to the tune of $377 dollars per incident<\/span> on average<\/span><\/a>.<\/span><\/p>\n However, while you may not be able to entirely prevent these costs from incurring, you can at least work to reduce them through:<\/span><\/p>\n \u00a0Implement these steps and your profit margins will be happy you did.<\/span><\/p>\n\n
Step #1: Hire On Character Above All Else<\/b><\/h2>\n
\n
Step 2: Train Your Staff To Look For Suspicious Behavior<\/b><\/h2>\n
\n
\n<\/span><\/li>\n
\n<\/span><\/li>\n
\n<\/span><\/li>\n
\n<\/span><\/li>\n
\n<\/span><\/li>\nStep 3: Be Aware Of How Different Groups Steal<\/b><\/h2>\n
\n
\n<\/span>
\n<\/span>Action Step:<\/i><\/strong> Make sure your staff identifies people who seem a bit too nervous\/excited for the act of buying things from a store.<\/span><\/span><\/li>\n
\n<\/span>
\n<\/span>Action Step:<\/i><\/strong> This type of theft is uncommon. However, if the items you sell in your store are extremely high in value, consider hiring an agile security guard.<\/span><\/span><\/li>\n
\n<\/span>
\n<\/span> This type of person is especially dangerous because he\/she might return to your store, again and again, to steal more if they get away with things once. It\u2019s likely that they\u2019ll buy items each time in order to avoid arousing suspicion.<\/span><\/span><\/li>\n
\n<\/span>
\n<\/span>Action Steps:<\/i><\/strong> With professionals, your main goal is to NOT become a repeat target as it will be very challenging to stop them the first time. However, you can stop repeat hits by keeping rigorous track of your inventory so that you know ASAP if you\u2019ve been stolen from.<\/span>
\n<\/span>
\n<\/span>Then you can have staff monitor that area of the store with more diligence or direct a security camera towards that section.<\/span><\/li>\n<\/ol>\nStep 4: Optimize Your Store Layout For Security<\/b><\/h2>\n
\n
Step 5: Let Your Suspect Know (Politely) The Game Is Up<\/b><\/h2>\n
\n<\/span><\/p>\nConclusion<\/b><\/h2>\n
\n